What Indianapolis apartment, house renters need to know about Indiana landlord-tenant bill

Chris Sims
Indianapolis Star

As a public service to our community, we are providing free access to this content.

Leer en español

Indianapolis renters' rights are a major topic in Indianapolis and in the Indiana General Assembly.

Indianapolis Mayor Joe Hogsett implemented a local ordinance that would help renters battle retaliatory landlords and help renters navigate their rights in 2020.

A short time later, the Indiana General Assembly passed Senate Enrolled Act 148, which stopped Indianapolis from regulating landlords. Republicans said it was a way to streamline regulation over the landlord-tenant relationship throughout Indiana. The bill was vetoed by Gov. Eric Holcomb only to have the Indiana Senate and House override the veto.

Some view the issue between a Republican-controlled Statehouse and Democrat-controlled Indianapolis to be as much about who ultimately holds the most power as it is about renters' rights.

A group of demonstrators gather on the steps of the Indiana State Capitol  on Monday, Feb. 8, 2021, in Indianapolis. State lawmakers are expected to vote Monday on whether to override Gov. Eric Holcomb's veto of a 2020 bill that prevented Indianapolis from regulating relationships between tenants and landlords.

Here's what you need to know about the battle for renters' rights:

Mayor Joe Hogsett's proposal for Indianapolis renters

In January of 2020, Hogsett sought legislation to protect renters from retaliatory practices by landlords. The goal was to prevent renters from losing their homes for seeking help from attorneys, code enforcement or health inspectors.

At the time, eight states including Indiana were without an anti-retaliation law, yet the Indianapolis' number of evictions were second only to New York City. 

On Feb. 26, Hogsett signed the initiative requiring landlords to provide tenants with their rights under Indiana law, putting $2,500 and $7,500 fines in place for retaliatory landlords and dedicating $250,000 in new spending toward legal assistance for renters struggling to navigate the system.

This placed the burden of proof on the landlords.

Overruled:Republican lawmakers strip Indianapolis renters of rights

Indianapolis Mayor Joe Hogsett, right, City-County Council President Vop Osili, hold a press conference and bill-signing ceremony for the city's new protections for renters after the passage of  proposals 40 and 41, at the City-County Building on Wednesday, Feb. 26, 2020.

How the Indiana House and Senate became involved

Senate Bill 340 originally took aim at condemned properties, but the new legislation was amended by the House Judiciary Committee on Feb. 26, 2020, prior to the signing of Hogsett's new Indianapolis legislation.

Indianapolis, Bloomington and Merrillville all have their own regulations.

The new provisions sought to prevent any city from regulating landlord-tenant relations without the General Assembly's approval, while still addressing an anti-retaliation law. Instead of fines, landlords would repay a single month's rent.  

This placed the burden of proof on the renters.

The Indiana Apartment Association, which has given about $1 million to Indiana Republican campaigns, agreed with the added language. Lobbyist Brian Spaulding claimed multiple regulations throughout the state could force an increase in rent. 

The amended bill became Senate BiIl 148, or Senate Enrolled Act 148, and was passed by both chambers of the General Assembly on Mar. 11, 2020.

Indiana Gov. Eric Holcomb gets the bill 

Holcomb shot down the bill on Mar. 25 as the coronavirus pandemic took hold of Indiana, as well as the rest of the country. The veto was only the second during Holcomb's tenure as governor.

He vetoed the bill, citing the legislation as overly broad by restricting a city's ability to regulate "any other aspect of the landlord-tenant relationship."

While claiming he understood the bill's goal was to "create uniformity," he couldn't sign off on the legislation.

"I believe this is not the right time for such language to become law," wrote Holcomb.

It's official:House overrides Gov. Holcomb's veto of landlord-tenant bill

Gov. Eric Holcomb speaks to the media and others present at the Indiana Statehouse during a press conference to give an update on COVID-19 and its impact on Indiana on Monday, March 16, 2020.

Indiana General Assembly has final say

On Feb. 8, 2021, the Indiana Senate voted to override Holcomb's veto. Only eight Republican Senators and all Democrats opted to vote against the veto, marking the first time the Republicans broke away from Holcomb's direction.

The Indiana House followed suit Tuesday, officially denying Holcomb's wishes and automatically placing Senate Enrolled Act 148 into law. Only four House Republicans sided with all Democrats against overriding the veto.

The move shut down the Indianapolis project, which with the help of Indiana Legal Services, came across 11 instances where renters were not informed of the rights and responsibilities form to sign. There were also 30 potential retaliation cases in the works.

Indianapolis had only two alleged retaliation cases reach court. One was thrown out.

“We could absolutely be letting off a bomb here. We don’t know what (SEA) 148 is going to do,” said Amy Nelson, executive director of Fair Housing Center of Central Indiana.

Republicans said few new standards would be added to Indiana code. Rep. Aaron Freeman, who presented the veto override last week to the Senate, addressed the multiple regulations being extinguished.

“This bill seeks to clarify those and standardize those and set one kind of floor for landlord-tenant issues in the state," Freeman said.

Chris Sims is a digital producer at IndyStar. Follow him on Twitter: @ChrisFSims.